Gold declined sharply after NFP but recovers

Gold declined sharply after the publication of strong data on the labor market in US, reaching the lows of 4 of July, but quickly recovered, helped by worries over the outlook for financial markets after the decision of the British to leave the EU.

NFP indicated 287K new jobs but the data for May were revised down to 11 000 from 38 000. The unemployment rate rose by two tenths of a percentage point to 4.9 per cent, as more people entered the labor force. Manufacturing employment increased by 14,000 last month after lost 16 000 jobs in May. Employment in retail trade rose by 29 900 and in the area of ​​leisure and hospitality industries rose by 59,000 jobs. Meanwhile, the average hourly wage increased by only two cents, or 0.1 percent in June. The growth in annualized income increased to 2.6 percent after rising 2.5 percent in May

But, given the desire of the Central Bank to wait for more data to assess the economic impact of the friday's report probably will have an impact in the short term. It should be emphasized, before the publication of the employment report interest rate futures US indicated a 19 percent chance of raising the Fed rate in December, but now the probability increased to 27 percent.

Gold reserves in the largest gold ETF-fund SPDR Gold Trust fell on Thursday about 4 tons to 978 tons.

However, high prices weighed on physical gold demand among Asian consumers. Discounts for gold in India rose to a record high of $ 100 an ounce this week, as the metal prices in the country reached almost three-year high.

The cost of the August gold futures on the COMEX fell to $ 1357.4 per ounce.